From 1993 to December 2008, when she was fired, Watts kept the books, handled payroll and accounting, and coordinated household and travel expenses for Steel, who lives in San Francisco. She admitted that she stole at least $400,000 from Steel in a variety of ways, including depositing numerous checks that had been payable to "cash" to her own bank account.

Watts used Steel's credit-card reward points to purchase gift cards and airline tickets for herself and her family, authorities said. She also paid herself more than the actual salary she was due. To hide what she had done, Watts made false entries in the accounting system of Steel's business operation, TPA Co., prosecutors said. Watts also tried to evade much of the federal income tax she owed for 2004 through 2007, according to the Internal Revenue Service.